Itc issue in credit ledger

This discussion addresses a common GST issue where excess Input Tax Credit (ITC) claimed in GSTR-3B is later reversed. The core question is whether interest liability arises on this reversed ITC. While not utilising the ITC generally avoids penalties and interest, the voluntary reversal of excess claimed ITC, even if not used, might still attract scrutiny and potential penalties under Section 73 of the GST Act.